ORGANIZATION & MANAGEMENT

CONTROLLING

Learning Activity 3. Thirst First Bottling Company: S.O.S.

Competition in the soft drinks industry is very intense that every means to improve a
company’s sales position is explored. Advertising and promotional efforts are heavily relied
upon by Thirst First Bottling Company to drum up customer’s interest in the company’s
products.

The company is engaged in the production and marketing of soft drinks. It operates
plants, warehouses, and sales offices throughout the Philippines. The company has been
serving the Philippine market for more than 50 years.

The manager in charge of advertising and promotion is Mr. Rolando Calanday, a

graduate of a marketing course in the College of the Immaculate Conception in Cabanatuan
City. The advertising and promotion unit coordinates with advertising firms in the design and
production of advertising materials like billboards, posters and streamers. The unit often
produces t-shirts printed with advertising messages which are used as promotional items. The
company spends more than Php 20M annually for the purpose.

Periodically, the ad and promo unit send the advertising and promotional materials to
managers of the various sales offices of the company. The managers, in turn, hand over the
materials to their respective sales teams for proper disposal. The drivers of the delivery trucks
with the assistance of helpers are directed to install the billboards and streamers on appropriate
places and past the posters in conspicuous corners of retail establishments.

At the beginning, the drivers appropriate for themselves a small portion of the
advertisement and promotional materials. Some of the billboards are used as partitions in the
houses of the drivers. The posters are used to reinforce the walls. The t-shirts are not handed
over to customers but to family members and friends. The materials are clearly not used as
intended but nobody in the sales offices questions the practice or even care to know.

One day, the general manager of the company, Mr. Marcelino de Vega, received a letter
from a concerned employee reporting about the unethical practice. Immediately, the general
manager called Mr. Calanday and inquired on how he was getting about his responsibility of
promoting the company’s products. Mr. Calanday’s reply did not satisfy the general manager.

On the same day, Mr. Calanday received an order from the general manager to clear up
the problem regarding the unethical practice or he will be replaced as head of his unit.

QUESTIONS:
1. What important management function was neglected by the company? Explain your
answer.
2. If you were Mr. Calanday, what will be your first move?